El Salvador ''Global Bitcoin Laboratory''
On September 7, 2021, El Salvador became the first country to legally embrace Bitcoin, the Government bought 400BTCs worth estimated $21Million, as President Nayib Bukele noted that every year, bitcoin will save $400 million for Salvadorans, he also expects this to improve the economy by boosting remittances from abroad.
As the Country makes history, laws are being put forward to maximize its user base, on 8 June 2021 the Legislative Assembly of El Salvador passed The Bitcoin Law,
"The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out". - the Law states.
The new regulation mandates that all establishments accept Bitcoin as a form of payment.
Furthermore, the government has built "Chivo" a digital wallet powered in part by California-based digital wallet firm BitGo, which is Salvadoran slang for "cool," and will reward $30 Bitcoin bonus to citizens who download it. However, Chivo failed to appear in app stores on its launch day.
While Crypto enthusiasts embraced the adoption of the BTC by El Salvador, some critics claim the move could pave way for money laundering.
Coin prices plummeted in an unprecedented selling frenzy on Tuesday, wiping out gains that had been priced in by a retail trading mania ahead of El Salvador's first day accepting bitcoin as legal tender, following the JP Morgan analysts's warning note to clients. “The August rally in non-fungible tokens and the pickup in decentralized finance activity have helped not only ethereum but also alternative cryptocurrencies that facilitate or plan to facilitate smart contracts, such as Solana, Binance Coin and Cardano, The previous phase of retail investors’ mania into cryptocurrency markets was between the beginning of January and mid-May... and retail investors are making cryptocurrency markets look frothy again.” -JPMorgan Managing Director Nikolaos Panigirtzoglou
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